VANCOUVER – Lower Mainland home sales took a significant dive in 2012 — a sign the market “needs to breathe” following years of record sales, according to the Real Estate Board of Greater Vancouver president.
Data released Thursday shows a 25.7% decline in home sales last year compared to the 10-year average in the region. The numbers come the day after the BC Assessment roll revealed property values dipped in some Metro Vancouver neighbourhoods for the first time in years.
“Expecting a slowdown, given what we had, is pretty realistic,” REBGV president Eugen Klein said, adding the drop in property values wasn’t necessarily directly correlated to the drop in home sales.
He noted the BC Assessment numbers were completed six months ago, but were only released to the public this week. The REBGV data was updated last month.
But University of B.C. professor Tsur Somerville, who specializes in real estate markets, said the two numbers are, in fact, related and the BC Assessment Authority has done a good job at determining prices.
“What the assessments are picking up is the markets have weakened since earlier (last) year,” he said, adding he believes the market will continue to be softer in 2013 compared to previous years.
B.C. Real Estate Association chief economist Cameron Muir also predicts home sales in the first quarter to remain fairly weak.
“Many consumers are taking more of a wait-and-see approach in the market today,” he said.
